Business cycle: Effects on business functions

Phase

Characteristics

FINANCE

MARKETING

HR

OPERATIONS

Boom

·       Peak demand

·       High investment

·       High confidence

·       High employment

·       Resource constraints

·       High cash inflow/ sales revenue resulting in high dividends/ retained profit

·       Potential need for borrowing

·       Increased investment/ capital employed

·       Increase selling prices to control demand

·       Opportunity for differentiation

·       Heavy promotion

·       Demand for product development

·       Wider distribution

·       Low availability of skilled labour

·       Increasing workload- higher job security

…